If a price support is maintained above the equilibrium price,the result will be a
A)Market price that is too low.
B)Market price equal to the equilibrium price.
C)Surplus of the product.

Question

Quizplus · Accepted Answer

Maintaining a price support above the equilibrium price will result in a surplus of the product as suppliers will be willing to produce more goods than consumers are willing to buy at the high price. This surplus will lead to a buildup of inventory, and suppliers may eventually be forced to reduce prices to clear the excess inventory.

If a Price Support Is Maintained Above the Equilibrium Price,the